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TSMC's 2022 Expansion Budget Exceeds $40 Billion
By Alan Patterson, EETimes (January 13, 2022)
Taiwan Semiconductor Manufacturing Co. (TSMC) once again plans a boost in capital expenditures. This new round calls for as much as $44 billion in 2022 to meet demand the company believes could grow by up to 20 percent during the next few years.
Chips used in high-performance computing (HPC) and smartphones, each accounting for about 40 percent of revenue during the fourth quarter of 2021, are driving demand for the world’s largest foundry. All application segments for which TSMC provides information, including automotive and IoT, posted growth during the period.
“We expect our capacity to remain tight throughout 2022,” TSMC CEO C.C. Wei said on a Jan. 13 conference call to announce quarterly results. “In 2022, we expect the supply chain to maintain a higher level of inventory as compared to the historical level, given the continued need to ensure supply security.”
Chip shortages that emerged around the same time as the Covid pandemic nearly two years ago are likely to persist this year as large populations stay at home to work and play games online. That trend has continued to crimp growth for car makers and other electronics manufacturers worldwide who failed to see the chip crunch coming.
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